Last Updated: March 20, 2023, 16:31 IST
Capital adequacy ratio of PSBs improved considerably from 11.5 per cent in March 2015 to 14.5 per cent in December 2022. (Representative picture)
All PSBs are in revenue with mixture revenue being Rs 66,543 crore in 2021-22, and that additional elevated to Rs 70,167 crore in first 9 months of present FY.
The authorities has taken varied reforms following which asset high quality of public sector banks has improved considerably with gross NPA ratio declining from the height of 14.6 per cent in March 2018 to five.53 per cent in December 2022, Parliament was knowledgeable on Monday.
All PSBs are in revenue with mixture revenue being Rs 66,543 crore in 2021-22, and that additional elevated to Rs 70,167 crore in first 9 months of present monetary yr, Minister of State for Finance Bhagwat Ok Karad mentioned in a written reply to Lok Sabha.
At the identical time, resilience has elevated with provision protection ratio of PSBs rising from 46 per cent to 89.9 per cent in December 2022, he mentioned, including capital adequacy ratio of PSBs improved considerably from 11.5 per cent in March 2015 to 14.5 per cent in December 2022.
Total market cap of PSBs (excluding IDBI Bank, which was categorised as personal sector financial institution in January 2019) elevated from Rs 4.52 lakh crore in March 2018 to Rs 10.63 lakh crore in December 2022, he mentioned.
Karad additionally mentioned banks, earlier positioned underneath Prompt Corrective Action (PCA) framework by RBI, have made vital enchancment.
Talking about varied measures taken to enhance the monetary well being of PSBs, Karad mentioned, the federal government carried out a complete 4R technique of Recognising NPAs transparently, Resolution and restoration, Recapitalising PSBs, and Reforms within the monetary ecosystem.
Major banking reforms undertaken by the federal government over the past eight years addressed credit score self-discipline, accountable lending and improved governance, moreover adoption of expertise, amalgamation of banks, and sustaining common confidence of bankers, he mentioned.
In reply to a different query, Karad mentioned, as per the knowledge supplied by Ministry of Road Transport & Highways (MoRTH), the full estimated automobile fleet is 30.48 crore (excluding knowledge from Madhya Pradesh, Andhra Pradesh and Lakshadweep), of which 16.54 crore automobiles are uninsured.
Replying to a different query, Karad mentioned the federal government since 2016 has given ‘in-principle’ approval for strategic disinvestment of 36 instances of public sector enterprises (PSEs) and/or subsidiaries/ items/ joint ventures of PSEs/ banks.
Of the 36 instances, 33 are being dealt with by Department of Investment and Public Asset Management (DIPAM) and three instances are being dealt with by the respective Administrative Ministry/Department, he mentioned.
“Out of the 33 instances being dealt with by DIPAM, strategic disinvestment transactions have been accomplished in 10 instances; 5 PSEs are into consideration for closure; 1 case is held up because of litigation, 1 case is underneath Corporate Insolvency Resolution Process (CIRP) in NCLT and a pair of transactions are underneath evaluation for feasibility,” he said, adding, remaining 14 transactions are at various stages.
In other PSEs, where the government continues to retain control, disinvestment through minority stake sale is carried out through various SEBI-approved methods such as initial public offer (IPO), offer for sale (OFS), buyback of shares etc. from time to time based on prevailing market conditions and investor interest, he said.
The modernisation and capacity expansion of PSEs are taken up by the respective boards of PSEs under the administrative control of different ministries, he added.
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